9th Oct 2020 08:56
(Alliance News) - John Wood Group PLC on Friday said it has secured an extension to its revolving credit facility to May 2023.
The FTSE 250-listed oilfield services company said recognising its lower debt requirement against a backdrop of considerable financial headroom and liquidity, the current USD1.75 billion facility will step down to USD1.5 billion in May 2022 and remain at that level until maturity in May 2023. It added that its covenants remain unchanged at 3.5 times pre-IFRS 16 earnings before interest, tax, depreciation and amortisation.
"This extension of our principal debt facility to May 2023 demonstrates the continued strength of support from our relationship banking partners and maintains Wood's strong liquidity and financial headroom in line with our conservative approach to debt financing arrangements," said Chief Financial Officer David Kemp.
John Wood's net debt as at June 30 was USD1.22 billion and the ratio of net debt excluding leases to adjusted Ebitda was 1.96 times. Undrawn facilities were USD1.63 billion compared to total financing facilities of over USD3 billion, including US private placement debt of around GBP880 million with maturity dates weighted towards 2031.
Shares in John Wood Group were trading 2.8% higher at 224.50 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
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